Latest news with #BYDSeagull
Business Recorder
3 days ago
- Automotive
- Business Recorder
China urges halt to auto industry's bruising price wars
SHANGHAI: China called on Saturday for its automotive industry to halt brutal price wars, as a threat to the sector's health and sustainable development, after key executives jousted over pricing pressure following large discounts offered to buyers. Tension between some top players has spilled into the open as competition intensifies in the world's largest auto market, with price wars begun in early 2023 showing little sign of abating, despite concern among both government and industry. The industry ministry said it would join hands with law enforcement agencies to tackle unfair competition and take necessary regulatory measures. 'There are no winners in a 'price war', let alone a future,' it said in a statement on its WeChat account, vowing to safeguard consumers and promote high-quality development of the industry. The remarks came after fresh incentives offered last week on more than 20 models by electric vehicle giant BYD that prompted several rivals, such as Geely and Chery ( to follow suit. Trump auto tariffs: President slaps 25% duties on car imports to US The ministry's comments echo a similar call on Saturday by the China Association of Auto Manufacturers (CAAM) for a truce in the price wars, saying they affect profitability and efficiency. It added that a new round of price war 'panic' was touched off in China after substantial discounts offered on May 23 by an automaker it did not identify. It proposed remedies such as auto companies adhering to the principle of fair competition and larger players refraining from market monopolies. 'Apart from reducing the price of goods according to law, enterprises shall not dump goods at prices below cost,' it added. BYD's incentives, which include government trade-in subsidies, can cut the domestic cost of its BYD Seagull electric hatchback to as little as 55,800 yuan ($7,750). On Friday, a BYD executive decried as alarmist comments by the chief of Great Wall Motor that the industry was 'unhealthy'. Great Wall's Wei Jianjun had said pricing pressure was hammering industry bottom lines.
RTHK
3 days ago
- Automotive
- RTHK
Beijing clamps down in bid to stop auto price wars
Beijing clamps down in bid to stop auto price wars BYD's incentives for buyers include taking the cost of one of its Seagull electric hatchbacks to as little as 55,800 yuan. Photo: CFOTO/AFP China urged its automotive industry to halt brutal price wars, calling them a threat to the sector's health and sustainable development, after key executives jousted over pricing pressure following large discounts offered to buyers. Tension between some top players in the world's largest auto market has spilled into the open as competition intensifies, with price wars begun in early 2023 showing little sign of abating, despite concern among both government and industry. The Ministry of Industry and Information Technology vowed to step up efforts to correct what it called excessive competition, the official news agency Xinhua said on Saturday. "There are no winners in a 'price war', let alone a future," the agency cited an unidentified ministry official as saying. The comments came after fresh incentives offered last week on more than 20 models by electric vehicle giant BYD, that prompted several rivals, such as Geely and Chery, to follow suit. The ministry's comments echo a similar call, also made on Saturday, by the China Association of Auto Manufacturers for a truce in the price wars, saying they affect profitability and efficiency. It added that a new round of price war "panic" was touched off in China after substantial discounts offered on May 23 by an automaker it did not identify. It proposed remedies such as auto companies sticking to the principle of fair competition and larger players refraining from market monopolies. "Apart from reducing the price of goods according to law, enterprises shall not dump goods at prices below cost," it added. BYD's incentives, which include government trade-in subsidies, can cut the domestic cost of its BYD Seagull electric hatchback to as little as 55,800 yuan. On Friday, a BYD executive had decried as alarmist comments by the chief of Great Wall Motor that the industry was "unhealthy". Great Wall's Wei Jianjun had said pricing pressure was hammering the bottom lines of car companies and suppliers. (Reuters)
CNBC
4 days ago
- Automotive
- CNBC
China urges halt to auto industry's bruising price wars
China called on Saturday for its automotive industry to halt brutal price wars, as a threat to the sector's health and sustainable development, after key executives jousted over pricing pressure following large discounts offered to buyers. Tension between some top players in the world's largest auto market has spilled into the open as competition intensifies, with price wars begun in early 2023 showing little sign of abating, despite concern among both government and industry. The industry ministry vowed to step up efforts to correct what it called excessive competition, the official news agency Xinhua said on Saturday. "There are no winners in a 'price war', let alone a future," the agency cited an unidentified ministry official as saying. The comments came after fresh incentives offered last week on more than 20 models by electric vehicle giant BYD that prompted several rivals, such as Geely and Chery, to follow suit. The ministry's comments echo a similar call, also on Saturday, by the China Association of Auto Manufacturers (CAAM) for a truce in the price wars, saying they affect profitability and efficiency. It added that a new round of price war "panic" was touched off in China after substantial discounts offered on May 23 by an automaker it did not identify. It proposed remedies such as auto companies sticking to the principle of fair competition and larger players refraining from market monopolies. "Apart from reducing the price of goods according to law, enterprises shall not dump goods at prices below cost," it added. BYD's incentives, which include government trade-in subsidies, can cut the domestic cost of its BYD Seagull electric hatchback to as little as 55,800 yuan ($7,750). On Friday, a BYD executive had decried as alarmist comments by the chief of Great Wall Motor that the industry was "unhealthy". Great Wall's Wei Jianjun had said pricing pressure was hammering the bottom lines of car companies and suppliers.
Time of India
4 days ago
- Automotive
- Time of India
China urges halt to auto industry's bruising price wars
China called on Saturday for its automotive industry to halt brutal price wars, as a threat to the sector's health and sustainable development, after key executives jousted over pricing pressure following large discounts offered to buyers. Tension between some top players in the world's largest auto market has spilled into the open as competition intensifies, with price wars begun in early 2023 showing little sign of abating, despite concern among both government and industry. The industry ministry vowed to step up efforts to correct what it called excessive competition, the official news agency Xinhua said on Saturday. "There are no winners in a 'price war', let alone a future," the agency cited an unidentified ministry official as saying. The comments came after fresh incentives offered last week on more than 20 models by electric vehicle giant BYD , that prompted several rivals, such as Geely and Chery, to follow suit. The ministry's comments echo a similar call, also on Saturday, by the China Association of Auto Manufacturers (CAAM) for a truce in the price wars, saying they affect profitability and efficiency. It added that a new round of price war "panic" was touched off in China after substantial discounts offered on May 23 by an automaker it did not identify. It proposed remedies such as auto companies sticking to the principle of fair competition and larger players refraining from market monopolies. "Apart from reducing the price of goods according to law, enterprises shall not dump goods at prices below cost," it added. BYD's incentives, which include government trade-in subsidies, can cut the domestic cost of its BYD Seagull electric hatchback to as little as 55,800 yuan ($7,750). On Friday, a BYD executive had decried as alarmist comments by the chief of Great Wall Motor that the industry was "unhealthy". Great Wall's Wei Jianjun had said pricing pressure was hammering the bottom lines of car companies and suppliers.
Mint
23-05-2025
- Automotive
- Mint
BYD Dealerships Failing Show Financial Pain in China Car Sector
Car dealership groups in two provinces have gone out of business since last month in China, both of them BYD Co. retailers, evidence of the tough competition in the nation's auto market and proof that not even selling the country's No. 1 brand can shield businesses from financial difficulties. Xingqi Group outlets in Liaoning province have stopped delivering new cars or providing service for more than 60 customers, according to Liaoning Radio and Television Station, while more than 500 people have formed online consumer rights groups to demand action from Qiancheng Holdings, which operated about 20 showrooms in Shandong province. Its stores also appear to have now closed, Chinese media outlet Autodealer reported May 6. Car dealerships in China are facing a profound shift brought about by the transition to electric vehicles and a slowdown in consumer spending that's left yards stuffed with stock. Most EV manufacturers now have a direct-to-consumer model, while the reduced servicing required by EVs and hybrids is also hitting dealerships' bottom lines. Stock levels in April reached 3.5 million cars, or 57 inventory days, the highest since December 2023, according to data shared earlier this week by Cui Dongshu, the secretary general for the China Passenger Car Association. Qiancheng Holdings said that adjustments in BYD's dealer policy over the past two years has put tremendous pressure on its cash flow. And due to other dealerships in Shandong province going under, local banks have tightened lending, adding to the pain, it said in an April 17 letter circulating on social media. Calls to Qiancheng Holdings and Xingqi Group weren't answered. Representatives for BYD didn't respond to requests for comment. One customer based in Jinan, the capital city of Shandong, told Bloomberg that she purchased a BYD Seagull hatchback at one of Qiancheng's stores last June. The dealer gave her lifetime servicing and also sold her an insurance package for 10,500 yuan . When she went back to the showroom earlier this year to renew her insurance, she found it had shut. She called BYD's official hotline but wasn't offered any solution, she said, declining to be identified for privacy reasons. Many BYD dealerships have excess stock after the company launched a new advanced driver assistance technology called God's Eye in February that will be installed in most of its models. That meant BYD dealers had to get rid of older stock quickly. Inventory levels at its outlets were the third highest of all brands in January, according to a China Automobile Dealers Association analysis. Under pressure to sell the cars, many dealerships resorted to slashing prices by thousands of yuan. This article was generated from an automated news agency feed without modifications to text.
